For the full year 2008 the loss from operations of $5,962,000 includes $5,360,000 in significant charges, including $4,636,000 in impairment charges associated with property and equipment held for sale, slow-moving inventory, marketable securities and a note receivable. In addition, the 2008 loss from operations includes $724,000 associated with severance paid to former officers. For the full year 2007 the loss from operations of $3,170,000 included $1,088,000 in charges associated with the write-off of a note receivable from a former customer, and $127,000 in impairment charges associated with a building held for sale.
The fourth quarter 2008 loss from operations of $3,986,000 includes $3,096,000 in impairment charges associated with equipment held for sale, slow-moving inventory and a note receivable. The fourth quarter of 2007 loss from operations of $380,000 included a net benefit of $913,000 resulting from a $1,040,000 benefit associated with a partial recovery of a previous loss on a note receivable offset by a $127,000 impairment charge associated with the building held for sale.
The 2008 significant charges in the fourth quarter and the year primarily represent impairment charges occurring due to a decline in the fair-value of associated equipment and inventory held for sale, in marketable securities previously obtained in exchange for notes receivable, and in notes receivable from related parties. These charges also include severance costs associated with former officers.
Selling expenses for the full year 2008 were $3.1 million, essentially equal to the selling expenses in 2007 despite an overall sales increase of $7.6 million. General and administrative expenses for the full year 2008 were $12.0 million, as compared to $10.9 million in 2007. The increase of $1.1 million in general and administrative expenses includes $724,000 in severance charges paid to former officers, and a $474,000 charge for the impairment of a note receivable. Selling expenses and general and administrative expenses for the fourth quarter of 2008 were $738,000 and $3,057,000, respectively, as compared to $964,000 and $3,188,000, respectively for the same period in 2007.
Net interest expense for the fourth quarter and full year ended December 31, 2008 was $619,000 and $2,437,000, respectively, as compared to $542,000 and $1,680,000, respectively, for the fourth quarter and full year of 2007. The increased interest cost in 2008 over 2007 was a primarily the result of the new debt facility with CVC California, LLC (formerly Bluefin Capital, LLC) entered into in June 2007, as well as the non-cash interest charges associated with equity components issued in connection with this debt.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
